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Statement from your Board of Directors

jacknsara

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I am posting the following statement and attachments per 11/26/19 email request from Larry Warner, president of the KBV IOA
pdfs included in the statement as well of the brief statement below are attached to this post
the content of the main documents is not posted directly due to loss of all formatting
Jack Goodstein

Aloha KBV Interval Owners—
You have recently been receiving emails to “Save KBV”. The Question is, save it from what? Success? Your Board of Directors can no longer idly sit by and not respond to the recent dissemination of false statements from a small group of owners trying to force their vision of KBV on all owners. Our initial silence was due to a threatened lawsuit. As a result, we needed to be very measured and fact based in our response. The attached Statement from the Board is the result.
If you would like more information, we invite you to review the Statement and additional supporting documents. Please don’t hesitate to contact any of your board members (contact information located in the Statement) if you have any questions.
PLEASE ASSIGN YOUR PROXY TO BOARD PRESIDENT LARRY WARNER so that he may use your votes to ensure KBV continues on its current path to success.
Respectfully, Your KBV IOA Board of Directors
 

Attachments

jacknsara

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Aloha

The statement issued by the current Board of Directors (BOD) of the Kauai Beach Villas (KBV) Interval Owners Association (IOA) on 11/25/19 asks, “save [KBV] from what? Success?”

As a former board member, I too remain interested in the success of KBV. There are multiple aspects to success. The current BOD approach is presumably one way to achieve one definition of success. This post addresses a few of the points contained in the BOD statement. Another approach documented in an approved BOD motion was suppressed in sole pursuit of the Wyndham strategy.

The BOD states that they “needed to be very measured and fact based in our response.” The problem with this is the omission of the word “selective” as a qualifier for “fact based”. In this and future posts I will provide some additional relevant facts that might support alternative viewpoints.

The BOD states that the resort management contract was awarded . . . to [Grand Pacific] without performing due diligence." Karen Blackford addressed this topic in various posts on TUG. Here is one: https://www.tugbbs.com/forums/index.php?threads/pahio-kauai-beach-villas-board-election.240675/page-9#post-2152589

The BOD states that “We did opt to not automatically renew the current management contract so that we could engage in due diligence and negotiate the best management contract for the association.” This decision relied on the vote of a non-owner Wyndham employee board member who declined to recuse herself from the vote.

The BOD states that “As a result of Trish Harrington’s “leadership” KBV IOA’s delinquency rate went from 10% to 17%, which means that the remaining dues paying owners—you— have to pay more to make up for all the people that are not paying.” This was a result of the cancelling the foreclosure contract with Wyndham without having a strategy to replace it. I concur that the BOD at that time should have immediately pursued a replacement strategy. I was not on the BOD at that time. Karen Blackford was. She discusses some of the challenges in TUG posts: https://www.tugbbs.com/forums/index.php?threads/pahio-kauai-beach-villas-board-election.240675/page-9#post-2152602 Further, the current BOD statement is somewhat misleading since Grand Pacific was able to generate rental revenues that substantially offset the delinquencies.

The BOD states that “due to the efforts of the current BOD as enumerated throughout this letter, 2020 maintenance fees will remain flat for all owners with 0% increase over 2019. In addition, the newly adopted budget includes an additional $400,000 in Reserve Contributions.” Without more open sharing of data, there is little reason for skeptics to believe other than this is based on first contract year incentives.

The BOD states that A recent owner survey indicated some owners want to divest themselves of their intervals for a variety of reasons. If you have tried to sell or even give away your interval, you have discovered it has no value on the resale market and there are few individual buyers. For this reason, the BOD has contracted with Wyndham Destinations to offer a solution to these owners that will allow them to exit their ownership at no cost to themselves or their family members. This solution also could go away if your BOD is removed.”

This challenge has been the subject of many of my posts on TUG over the years. During my one-year tenure as a board member I was the chairperson of the Ownership Transitions committee. A summary of survey results is available at this link: https://www.tugbbs.com/forums/index.php?threads/kbv-december-2018-survey-results-initial-release.286527/

In a follow up post planned by Friday 11/29/19, I will provide additional detail regarding the following approved board resolution to study a specific alternative strategy based on survey results to address these issues. The key point for now is that Larry Warner, BOD President, stopped Grand Pacific, the resort manager, from implementing the authorized action. If the results had come back demonstrating the shortcomings of that alternative, then pursuit of renewal of the Wyndham foreclosure agreement would have been the only identified option. ALL OWNERS SHOULD CONSIDER WHY STUDY OF THAT OPTION WAS HALTED


https://kauaibeachvillasresort.com/wp-content/uploads/2019/09/051619.mins_.pdf

PAHIO at Kauai Beach Villas Interval Owners Association Board of Directors Meeting Kauai Beach Villas Thursday, May 16, 2019

C. Transition Committee Report

On motion of Director Goodstein, seconded by Treasurer Harrington, the Board Resolved that Grand Pacific should investigate and report the feasibility of developing and implementing the flex concept illustrated in the most current revision of file: Flexing Year of Use Concept rev [most current] to the Board. Deliverables include, but are not limited to: (1) an assessment of additional changes to the flex concept that may be required to assure compliance with Hawaiian regulations; (2) an assessment of its potential appeal to existing Owners who have only one annual or one every other year unit. This resolution does not authorize expenditure of funds for actual development, test or implementation of software. Progress to date shall be reported at every Board meeting. Additional more frequent updates via email are desirable but optional.


Jack Goodstein

Former member of KBV BOD
 

magmue

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I'm so glad to see you posting here on TUG about this, Jack.
....a small group of owners....
Not small. I am one of many hundreds. I am not a founder or leader of that group, and I do not want to put myself forward as a spokesperson, but I support their efforts.

I'm looking forward to reading your follow-up post here on Friday. I just felt compelled to add that in the meantime, any KBV owner who is considering the request in post # 1 to "assign proxy to Larry Warner, board president", should hold off. There is a much better alternative.
 

ecwinch

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One can only hope that the patient survives the operation.
 

ecwinch

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The BOD states that they “needed to be very measured and fact based in our response.” The problem with this is the omission of the word “selective” as a qualifier for “fact based”. In this and future posts I will provide some additional relevant facts that might support alternative viewpoints.

The BOD states that the resort management contract was awarded . . . to [Grand Pacific] without performing due diligence." Karen Blackford addressed this topic in various posts on TUG. Here is one: https://www.tugbbs.com/forums/index.php?threads/pahio-kauai-beach-villas-board-election.240675/page-9#post-2152589
Jack - I would agree that a fact-based approach is important. And being "selective" is a danger.

Toward that end - in terms of the facts that are in the public record, I would like to have a full understanding of what due diligence was conducted in 2016. Because Karen does not discuss in detail what due diligence was conducted in 2016 in the post you link to. She outlines the dates the contracts were executed. There is no mention of what due diligence was executed - i.e. how many firms were sent the Request For Proposal (RFP) on the management contract.

If you have first-hand knowledge to the contrary, please advise.
 

jacknsara

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Observations from my leadership of the KBV ownership transitions committee

Quote from my previous post: “If the results had come back demonstrating the shortcomings of that alternative, then pursuit of renewal of the Wyndham foreclosure agreement would have been the only identified option. ALL OWNERS SHOULD CONSIDER WHY STUDY OF THAT OPTION WAS HALTED”​

The current BOD statement cited the results from the 2018 surveys as part of the justification for awarding the resort management contract to Wyndham.

A recent owner survey indicated some owners want to divest themselves of their intervals for a variety of reasons. If you have tried to sell or even give away your interval, you have discovered it has no value on the resale market and there are few individual buyers. For this reason, the BOD has contracted with Wyndham Destinations to offer a solution to these owners that will allow them to exit their ownership at no cost to themselves or their family members. This solution also could go away if your BOD is removed.​

A deeper discussion of those results might be useful to interested owners.

Partial results were shared here on TUG in Feb 2019 in a 24 page pdf file. When interpreting the results, it is important to remember that survey respondents were volunteers and not a random sample of all owners. The file opens with the following statement: “This document contains partial results from the December 2018 survey. Some information has been removed for one of two reasons: (1) all comments have been removed; (2) questions which were only seen by owners who answered an earlier question a certain way.” https://www.tugbbs.com/forums/index.php?threads/kbv-december-2018-survey-results-initial-release.286527/

Page 2 indicates that about 79% of respondents own only one unit with the majority of those being an every-other-year unit.

Page 5 indicates that an equal 30% either almost always use their ownership to stay at KBV or almost always exchange to somewhere else. It has been reported that a bit under 10% of KBV occupancy is by owners; the way that under 10% is calculated excludes RCI Points and Wyndham club KBV owners who choose to stay at KBV.

Page 6 indicates that 29% of respondents are facing circumstances now that keep them from using their ownership.

My pre-election outsider’s (i.e. not privy to same info as board members) analysis of various rates of ownership transitions begins on page 7 of the pdf of my 2018 campaign position paper Goodstein_KBV_BOD_2018 attached to post 101 at https://www.tugbbs.com/forums/index.php?attachments/goodstein_kbv_bod_2018-pdf.6144/

Another bit of information in that pdf is the observation that the 45 KBV apartments not in the PAHIO timeshare had a market value equivalent of at least $5,000 per week while the timeshare units had a negative or negligible value.

I used other survey data not in the posted results file and resort manager reports generated for board members to update and calibrate an excel stock and flow model useful for what-if / sensitivity analysis. The model also includes a time profile of how those rates are likely to change in the future. While I shared that with the entire board, I suspect that I had the most understanding and appreciation of its utility as a decision support tool. Without going into detail, I discovered that while my campaign estimate of owners transitioning out (wanting to exit) was in range, the number of new owners coming in was overstated.

The following statement appears on page 10 of my 2018 campaign paper: “In order to address root cause 110, the KBV BoD should develop and deploy a marketing plan to identify characteristics of potential buyers likely to appreciate KBV (segmentation) and focus communications to reach them (targeting).”

Based on the survey comments, owners have many reasons for wanting to exit. Some are lifecycle events such as age, health and financial reversals. The solution of mutual benefit for those owners and the IOA is to have the aftermarket perceive those units having a positive value.

The leading non-lifecycle issues were the cost and stress of the long flight to Kauai for a short one week stay. The question occurred to me whether the ability to shift year of use either forward or backward with more lead time than submittal of reservation requests to enable a two week stay every two or four years would appeal to folks whose interest is to use. I have rented at a number of places on Kauai. I find the maintenance fees at KBV (ignoring the non-recurring initial purchase cost) to be a very fair deal compared to what I have to pay elsewhere (there are often cheaper deals for either last minute or lower tier places).

I developed a detailed illustration of a concept that I believe complies with Hawaiian regulations to enable flexing year of use by either one or two years depending on whether ownership was every year or every other year. While KBV governance documents do not currently permit it, that is something that could be changed provided the case could be made that this feature would appeal to a sufficiently large market segment to generate demand that equals or exceeds the rate of owners wanting to exit. Hence the motion approved at the May 2019 meeting.

C. Transition Committee Report - On motion of Director Goodstein, seconded by Treasurer Harrington, the Board Resolved that Grand Pacific should investigate and report the feasibility of developing and implementing the flex concept illustrated in the most current revision of file: Flexing Year of Use Concept rev [most current] to the Board. Deliverables include, but are not limited to: (1) an assessment of additional changes to the flex concept that may be required to assure compliance with Hawaiian regulations; (2) an assessment of its potential appeal to existing Owners who have only one annual or one every other year unit. This resolution does not authorize expenditure of funds for actual development, test or implementation of software. Progress to date shall be reported at every Board meeting. Additional more frequent updates via email are desirable but optional.​

I dialed into or attended in person every schedule board meeting since May primarily to hear Grand Pacific report on progress as required in the motion. No such report ever occurred. I asked Larry Warner in person about it at the October board meeting. He verbally acknowledged telling them to postpone any effort on it.

Grand Pacific possesses the marketing tools to assess the appeal of the proposal. Excluding the backlog of IOA owned inventory and units currently in default (the combination of the two is substantial), the quantity of annual equivalent units needing to be transferred to new owner increases over the years and probably ranges between about one hundred currently and two hundred within a decade. The easiest folks to target with such an offering would be exchangers and renters experiencing KBV. There would be several obstacles to address in implementation of such a strategy. Without the results of the authorized but blocked assessment, there is no data on which to evaluate whether it would be worth pursuing.

Had the study not been blocked and the results indicated insufficient appeal, I might have concurred with the BOD contract with Wyndham: “. . . the BOD has contracted with Wyndham Destinations to offer a solution to these owners that will allow them to exit their ownership at no cost to themselves or their family members.” It certainly is a good deal for Wyndham to acquire additional inventory for their full retail sales division at essentially zero cost.

I continue to wonder why that simple marketing study was blocked. This is not the only approved board motion that the current president ignores. For instance, https://www.tugbbs.com/forums/index.php?threads/why-this-forum-for-pahio-at-kauai-beach-villas-kbv-exists.282380/ documents “. . . The KBV BOD accepts the TUG expectation that the KBV BOD promote the use of the KBV Forum within TUG to all KBV IOA members in KBV’s email and US Postal mail communications. . . .” None of the communication from the Board since May 2019 (and little from prior to May) includes any mention of this forum. I reminded Larry of the commitment after the October board meeting. I consider its omission from the November 22, 2019 Letter from your KBV Interval Owners Association to be deliberate and not an oversight.

This was long. Mahalo to those who have read it in its entirety.

Jack Goodstein

p.s. There were two other options discussed. One was bulk purchases by one or more vacation clubs. The study of that option was authorized by a board motion in October 2018; Larry Warner expanded its scope without authorization (until May 2019) to replacement of the resort management contract. The other option involved de-annexation of units which upon analysis appeared to solve a problem KBV did not have now or in the foreseeable future.
 

jacknsara

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Jack - I would agree that a fact-based approach is important. And being "selective" is a danger.

Toward that end - in terms of the facts that are in the public record, I would like to have a full understanding of what due diligence was conducted in 2016. Because Karen does not discuss in detail what due diligence was conducted in 2016 in the post you link to. She outlines the dates the contracts were executed. There is no mention of what due diligence was executed - i.e. how many firms were sent the Request For Proposal (RFP) on the management contract.

If you have first-hand knowledge to the contrary, please advise.
Aloha Eric,
I have no first hand knowledge. Based on imperfect memory of various conversations, I do believe there was a "due diligence process." Given that Wyndham did not choose to formally contest the loss of the contract at that time, I also believe the potential deficiencies were minor. Those uncontested potential deficiencies do not in any way justify Wyndham's hostile takeover of the board this year which is being contested in a relatively timely manner.
Jack
 

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Bump this KBV thread as well / Sunday - 271. views
 

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Jack - as always thanks for your detailed post with your observations.

Everyone has to make their own decision here.

On one hand we have a group led by former BoD members that are advocating removal of the current BoD, with no announced plan on how to address the many concerns facing the resort. Led by the very BoD members that canceled the foreclosure agreement with Wyndham three+ years ago (to which you observe "This was a result of the cancelling the foreclosure contract with Wyndham without having a strategy to replace it. I concur that the BOD at that time should have immediately pursued a replacement strategy."). Which is a direct causation of the hole the resort finds itself in after three years of "studying" the problem.

On the other hand, we have the current BoD - which has moved forward with a permanent plan that addresses the core problem of converting non-paying intervals into dues-paying intervals - a plan you seem to suggest you would find acceptable if the market survey you advocated had been completed and proven to be lacking. A plan that not only addresses defaulting owners but also results in the resort refurbishment being executed without a special assessment (at least in Year 1).

And while I applaud the effort you put into your analysis, you have to recognize that while your plan might have stemmed the growth of defaulting owners - it did little to address the problem of units already in default or foreclosed. Nor how to fund the refurbishment.

That is what is at stake in this election - does KBV move forward with a firm plan that puts us on the path for the future, or do we put the people who got us into this mess back in charge?

I consider it folly to consider the latter, especially when they have not offered one iota of detail on how they will move forward. Especially given how in their years of leadership they proved to be more interested in their paid vacations at Club expense.

Because we should not have to rely on "recollections" of what the due diligence process was in 2015-2016. With proper governance, we would only need to refer to the minutes of the BoD meetings from that timeframe.
 

jacknsara

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. . . And while I applaud the effort you put into your analysis, you have to recognize that while your plan might have stemmed the growth of defaulting owners - it did little to address the problem of units already in default or foreclosed. Nor how to fund the refurbishment. . . .
. . .
Because we should not have to rely on "recollections" of what the due diligence process was in 2015-2016. With proper governance, we would only need to refer to the minutes of the BoD meetings from that timeframe.
Aloha Eric,

The net rental revenue that Grand Pacific was generating was close to covering the loss from delinquencies and IOA owned inventory. I do not consider that level of rentals a good long term strategy but in my opinion there was no near term crisis. There was time to study other options.

Grand Pacific had restored our reserves to good health. In retrospect, for detail reasons beyond what I want to address now, the reluctance of the board to move forward on the whole refurbishment appears to me to be related to Wyndham's "secret" plan to take the management contract back. For some info, look into the minutes and consider why a second reserve study was authorized (I abstained on that vote) and what was done with the result (other than to delay taking action). BTW - please remember than a major component of the upgrade - the split whole unit A/C - was authorized and will likely be completed before the end of 2020.

Oh - and after you review all the minutes of board meetings since May 16 this year, let us know how much of the evaluation process detail that resulted in Wyndham being awarded the management contract you can report here.

Jack
 

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Oh - and after you review all the minutes of board meetings since May 16 this year, let us know how much of the evaluation process detail that resulted in Wyndham being awarded the management contract you can report here.

Jack
Jack - as you well know, the minutes of the BoD meeting are not suppose to be a minute by minute account. And I would not expect any minutes from 2015-2016 to provide detail on the bid/due diligence process that was engaged in during that timeframe. But I would expect some mention of the process to be documented in the minutes.

At least on par with the evidentiary record I find in our recent BoD minutes below. Can you find any similar minutes from 2015-2016?

Thursday, May 16, 2019 . On motion of Director Twardzicki, seconded by Secretary Ramos, the Board of Directors of Kauai Beach Villas Interval Owners Association moved to notify Grand Pacific Resorts that their management agreement will not be automatically renewed, and the board will be soliciting bids for the management of Kauai Beach Villas. The motion passed 3-2; Treasurer Harrington and Director Goodstein voted against.

Wednesday, June 12, 2019 . 8:35am HST The Board moved into executive session to discuss soliciting management proposals for the KBV IOA.

Tuesday, August 6, 2019 . 10:15am HST The Board moved into executive session to discuss proposal from Grand Pacific Resorts to resolve disagreement with the Board over the nonrenewal/termination of the management agreement. 3. 10:23am HST The Board exited executive session. 4. Motion by George Keeney to accept the proposal dated July 31, 2019 from Robert L. Shipley, legal counsel to Grand Pacific Resorts to resolve the disagreement with the Board over the non-renewal of the management agreement and authorize President Warner to sign on behalf of the Board of Directors. Motion seconded by Charles Twardzicki. Motion passed by an affirmative vote of all directors. 5. The Management Contract committee decided to offer any respondents to the Kauai Beach Villas Request for Proposal for a contact to manage the resort an opportunity to meet with the committee in the Puget Sound area to present their proposal and respond to questions from the committee. President Warner will notify the current respondents of this opportunity.

Thursday, September 5, 2019 - 6:02am HST The Committee moved into executive session to discuss management proposal for the KBV IOA. Present from Wyndham Destinations, Robert Morrice, Hawaii Regional Vice President; Linda Kolstad, Director Association Governance – Hawaii; Danielle Ramos, Regional Controller – Hawaii.

Thursday, September 5, 2019 - 10:02am HST The Committee moved into executive session to discuss management proposal for the KBV IOA. Present from Capital Vacations was Alex Chamblin, Sr. Vice President and Eric Assam, Executive Vice President of Operations.

Thursday, September 6, 2019 - 11:02am HST The Committee moved into executive session to discuss management proposal for the KBV IOA. Present from Grand Pacific Resorts were: Jay Anderson, Vice President Resort Operations; Sherri Weeks-Rivera, Vice President Sales and Business Development; Clinton Owen, General Manager, Kauai Beach Villas.
 

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Going from 10% delinquency to 17% delinquency in a few short years is not a small blip. Even if much of the difference was recovered through rentals, a high delinquency percentage can spiral out of control quickly if the economy tanks and rental income goes down. Also, GPR was incentivized to keep delinquency high as they made more money off rentals. There was no real incentive to reduce delinquencies and find interested owners. It certainly seems that having Wyndham absorb the non-paying intervals is a more sustainable strategy.

It doesn’t seem like this was a priority for the prior board like it should have been, and the current BOD makes good points.
 

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Aloha,

Given the impact of covid-19, I imagine that this is a very challenging time for KBV staff, management and BOD. As an owner, I wonder about a few of the challenges. While I am not happy about the sequence of developments that led me to resign from the BOD, I am relieved that I do not have that responsibility right now.

Whether in this forum or direct email, I hope the BOD communicates with owners sooner than later.

Before I pose some of the questions I wonder about, I wish to clearly state that covid-19 developments doomed any hope of success for the alternate strategic directions I outlined earlier in this thread. I urge all KBV owners, especially those that have previously aligned with the saveKBV position, to realize that the likely collapse of future rental revenues would have threatened the quality and viability of KBV going forward. Given the current circumstances, I believe we are fortunate that Wyndham is absorbing some or all of our non-performing inventory. Other than normal elections, further challenges including legal actions will not only be a waste of money, it will distract BOD and management attention from far more important and urgent matters.

For ease of reference, I am pasting in a selection from my post #6 earlier in this thread:

Had the study not been blocked and the results indicated insufficient appeal, I might have concurred with the BOD contract with Wyndham: “. . . the BOD has contracted with Wyndham Destinations to offer a solution to these owners that will allow them to exit their ownership at no cost to themselves or their family members.”

Wishing everyone good health and success in avoiding covid-19,

Jack Goodstein
 

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I don't understand the letter from the board. I have repeatedly asked about selling my 2 bedroom odd year property back for free, and I have been told there is no ability to do so, but in this letter, it claims that is something that is currently offered and that if we vote the board out, we will lose that ability. Am I missing something? Is that actually an option? Or is that a misrepresentation?
 

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Other than normal elections, further challenges.... will not only be a waste of money, it will distract BOD and management attention...
@jacknsara, are you aware of anything in the KBV by-laws that lays out how the Selection Committee should evaluate potential BOD candidates? What is the process by which that group decides who should - and who shouldn't - go on the ballot?
 

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I am posting the following statement and attachments per 11/26/19 email request from Larry Warner, president of the KBV IOA
pdfs included in the statement as well of the brief statement below are attached to this post
the content of the main documents is not posted directly due to loss of all formatting
Jack Goodstein

Aloha KBV Interval Owners—
You have recently been receiving emails to “Save KBV”. The Question is, save it from what? Success? Your Board of Directors can no longer idly sit by and not respond to the recent dissemination of false statements from a small group of owners trying to force their vision of KBV on all owners. Our initial silence was due to a threatened lawsuit. As a result, we needed to be very measured and fact based in our response. The attached Statement from the Board is the result.
If you would like more information, we invite you to review the Statement and additional supporting documents. Please don’t hesitate to contact any of your board members (contact information located in the Statement) if you have any questions.
PLEASE ASSIGN YOUR PROXY TO BOARD PRESIDENT LARRY WARNER so that he may use your votes to ensure KBV continues on its current path to success.
Respectfully, Your KBV IOA Board of Directors

I hope you also posted this on the other list so the lemmings can read actual facts, etc. I could not see where I could forward this with all attachments.
 

ValChatelle44

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Aloha,

Given the impact of covid-19, I imagine that this is a very challenging time for KBV staff, management and BOD. As an owner, I wonder about a few of the challenges. While I am not happy about the sequence of developments that led me to resign from the BOD, I am relieved that I do not have that responsibility right now.

Whether in this forum or direct email, I hope the BOD communicates with owners sooner than later.

Before I pose some of the questions I wonder about, I wish to clearly state that covid-19 developments doomed any hope of success for the alternate strategic directions I outlined earlier in this thread. I urge all KBV owners, especially those that have previously aligned with the saveKBV position, to realize that the likely collapse of future rental revenues would have threatened the quality and viability of KBV going forward. Given the current circumstances, I believe we are fortunate that Wyndham is absorbing some or all of our non-performing inventory. Other than normal elections, further challenges including legal actions will not only be a waste of money, it will distract BOD and management attention from far more important and urgent matters.

For ease of reference, I am pasting in a selection from my post #6 earlier in this thread:

Had the study not been blocked and the results indicated insufficient appeal, I might have concurred with the BOD contract with Wyndham: “. . . the BOD has contracted with Wyndham Destinations to offer a solution to these owners that will allow them to exit their ownership at no cost to themselves or their family members.”

Wishing everyone good health and success in avoiding covid-19,

Jack Goodstein
Aloha,
I am retired Certified Public Accountant who spent over 25 years employed by a major develpoper and an employee involved in creating more homeowner associations than most people ever live in as well as being a Board member of many of those associations.
I think the quoteabove attributed to Jack Goodstein below is completely wrong. During the COVID 19 shutdown, the normal operating expenses of the KBVIOA are significantly reduced (lower utilities, no weekly cleaning, no laundry expenses, no organized activities, ) and there is no ability to rent the units by Wyndham or anyone else to augment income. The recent flood has shut down the units as well. When the pandamic is over and the units repaired, there should be an increased demand to get back to paradise that we are all missing today and that should result in a natural increase in rental use. 2019 dues should have all been paid by now, so a normal amount of cash is in the bank to maintain the resort until it can open. The issues that I think we are facing is getting independent and repesentative Board members to look after all the interests of our varied membership groups that gives all of us a say in the future of a resort we all love to enjoy. The annual meeting of the Members is supposed to be just that and one can not legitimately be held when members cannot attend.
Mahalo for your consideration
Larry Geiger
 

jacknsara

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@jacknsara, are you aware of anything in the KBV by-laws that lays out how the Selection Committee should evaluate potential BOD candidates? What is the process by which that group decides who should - and who shouldn't - go on the ballot?
Aloha,
I just looked and discovered that the GP link to the KBV governance document still works. Since that could end without notice, I suggest downloading CCRs and bylaws all as soon as possible.
The login password is KBValoha
My recall is that it is up to the board members who are not currently running.
My position when I was on the nominating committee was to allow any eligible owner to be on the ballot. Sadly, I did not personally check the status of all candidates and just took the then president's word for it.
An accompany position was described in https://tugbbs.com/forums/threads/the-evolution-of-a-virtual-primary.289923/ from which I copy the following sentence: Given free virtual tools including polls and surveys, in future years, this forum can serve as a virtual primary for owners to down select from a broad field of candidates to the few who best represent the interests of the majority. The pattern of incumbents getting elected simply because they are incumbents can be overcome.
Jack
 

jacknsara

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Aloha,
I am retired Certified Public Accountant who spent over 25 years employed by a major develpoper and an employee involved in creating more homeowner associations than most people ever live in as well as being a Board member of many of those associations.
I think the quoteabove attributed to Jack Goodstein below is completely wrong. During the COVID 19 shutdown, the normal operating expenses of the KBVIOA are significantly reduced (lower utilities, no weekly cleaning, no laundry expenses, no organized activities, ) and there is no ability to rent the units by Wyndham or anyone else to augment income. The recent flood has shut down the units as well. When the pandamic is over and the units repaired, there should be an increased demand to get back to paradise that we are all missing today and that should result in a natural increase in rental use. 2019 dues should have all been paid by now, so a normal amount of cash is in the bank to maintain the resort until it can open. The issues that I think we are facing is getting independent and repesentative Board members to look after all the interests of our varied membership groups that gives all of us a say in the future of a resort we all love to enjoy. The annual meeting of the Members is supposed to be just that and one can not legitimately be held when members cannot attend.
Mahalo for your consideration
Larry Geiger
Aloha Larry,
I will think about your post and consider a response in the days ahead. For now, I just want to let you know that I am not ignoring you.
Jack
 

magmue

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Thank you for the link to by-laws, Jack.
My recall is that it is up to the board members who are not currently running.
My position when I was on the nominating committee was to allow any eligible owner to be on the ballot. Sadly, I did not personally check the status of all candidates and just took the then president's word for it.
I think your recollection is correct re: who serves on the nominating committee. But there seem have been several different issues in play this time around that make it difficult to consider these "normal" elections.
  1. Candidates who would seem to be qualified were declined a place on the ballot for unspecified reasons.
  2. The ballot does not offer a write-in option on it.
  3. There is no plan to offer virtual attendance (via Zoom or other app) to interested owners
  4. Proxy holders have been informed that nominations from the floor will not be accepted.
I am interested to know whether the by-laws support these decisions.
 
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